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Three and TalkTalk urge Ofcom to cap BT spectrum ownership

Open letter calls for cap to ensure market does not become unbalanced

Ofcom has been urged to put a cap on the amount of spectrum any one mobile operator can own ahead of the release of 2017’s spectrum auction.

An open letter sent to Ofcom CEO Sharon White signed by TalkTalk, Three, CityFibre, Relish and the Federation of Communication Services said that the regulator must ensure that any one player, chiefly BT but also Vodafone, does not have undue market advantage.

“The UK suffers from the largest imbalance in spectrum distribution across mobile operators of any developed country. BT already owns nearly half of the UK’s vital airwaves and Vodafone nearly a third,” the letter stated.

“This imbalance has developed as a consequence of Ofcom’s failure to put protections in place that ensure all networks have access to sufficient amounts of spectrum to deliver a great mobile service and competitive prices.”

The letter argued that a 30 per cent cap would mean that all providers have adequate resources in the market to provide strong coverage and capacity for customers.

“A cap at this level will allow a competitive bidding process among existing operators and new entrants and provide a fair return to the public purse,” the companies wrote.

“By protecting effective competition and supporting a market with genuine choice, a 30 per cent cap would also deliver significant long-term economic benefits for the UK well beyond the short-term sales proceeds of the auction.”

The letter also said that a cap would stop BT and Vodafone hoarding spectrum, something they are already doing, which the operators claimed is to the detriment of the UK’s digital economy.

“BT and Vodafone already sit on large amounts of unused mobile spectrum, currently supported by mobile handsets. This denies customers of other networks access to increased speeds and better customer experience,” the letter said.

“The failure to implement the cap will mean that BT and Vodafone have the opportunity to stockpile even more airwaves and increase their dominance with competition and consumers suffering as a result.”